Xcite seals $50m Canadian funding deal

OIL explorer Xcite Energy yesterday raised $50 million (£31m) to fund the development of its Bentley field in the North Sea by issuing loan notes to a Canadian investment manager.

West Face Capital will receive 14 per cent interest on the unsecured loan notes, which will initially last for 360 days, with interest being paid at four points.

The Aim-quoted firm – a very popular stock with private shareholders – will use the money to develop its Bentley field, where the Rowan Norway drilling rig is sinking an appraisal well.

Analysts at Fox Davies said: “The issuing of loan notes should add contingency funds and thus strengthen the company’s cash position during the phase 1A work programme on its Bentley field. The fact they now have enough … flexibility for the next 12-15 months will, hopefully, provide a springboard for the next phase of growth.”